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Government Earns N500m From Renewal of 668 Telecoms Licences

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  • Government Earns N500m From Renewal of 668 Telecoms Licences

The Federal Government through the Ministry of Communications has earned about N500 million from the issuance and renewal of spectrum licenses between November 2015 and September 2016.

This, according to the Minister of Communications, Adebayo Shittu, is part of the efforts of the Ministry channeled towards spectrum management in Nigeria.

Shittu, who disclosed this at the National Council on Communications Technology conference, held in Kaduna, at the weekend, noted that government intended to secure state of the art mobile equipment that will be deployed to enforce compliance and also enable the detection, location and blocking of illegal users of spectrum.

The minister pointed out that effective radio spectrum monitoring would assist with intelligence gathering and support the agencies in enhancing security and safety of citizens and the nation in general.

Adebayo disclosed that in its effort to broaden Broadband penetration in Nigeria, government has licensed six slots of the 2.6MHz spectrum for the deployment of 4G-LTE Services. He stressed that in the same vein, processes have commenced for the licensing of Broadband services on the 5.4 GHz Spectrum Band and the allocation of 70/80 GHz band (E-Band).

The minister disclosed that Foreign Direct Investment (FDI) in the sector has increased from $32 billion in 2015 to $38 billion in 2016, adding that broadband penetration has reached 20.95 per cent, while the percentage of Internet penetration has reached a milestone 47.44 per cent, making Nigeria, second only to South Africa in the whole of the African Continent.

“There is a positive increase in the number of active telecoms subscribers with an increase from 148.70 million in august 2015 to 152.28 million as at August 2016, which is an increase of 5.9 per cent. In the same vein, tele-density rose from 107.67 per cent in August 2015 to 109.14 per cent in August 2016, thus recording an increase of 1.47 per cent,” he stated.

Furthermore, Adebayo, said government will expand investments in Information and Communications Technology (ICT) infrastructure to extend connectivity to the unserved and underserved areas.

In this regard, he said attention will be paid to the issue of multiple taxation of ICT infrastructure. “Also, we are working to have ICT infrastructure designated as Critical National Infrastructure. Efforts are being made to procure two additional communication satellites to complement the existing NigComSat as a means of reaching areas that cannot easily be covered by terrestrial fiber.

“We are also working to make more investments in building the capacity and harnessing the talents of our youth. In particular we are increasing Accelerators and Incubator programmes as a means of building and harnessing the capacity of our increasingly ICT savvy youth population. Our game plan is to deploy our indigenous ICT for national development. We will work to ensure that tech start-ups are not burdened with high take-off costs and killer interest rates that they currently suffer from. We believe that ICT companies should benefit from government incentives where first entrants can get pioneer status which would lead to an unprecedented boom in the sector,” he stated.

Shittu, who said that ICT has become a fulcrum of the nation’s economy traversing all aspects, including the public service, banking and finance, health and social services, education, security and agriculture, noted that the ubiquity and pervasiveness of ICT is manifest, “the challenge is how to harness and leverage the opportunities thrown up by the new economy powered by ICT to address the issues of revenue, investments and cost savings.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Crude Oil

Oil Holds Near Highest Since 2018 With Global Markets Tightening

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Crude Oil - Investors King

Oil held steady near the highest close since 2018, with the global energy crunch set to increase demand for crude as stockpiles fall from the U.S. to China.

Futures in London headed for a third weekly gain. Global onshore crude stocks sank by almost 21 million barrels last week, led by China, according to data analytics firm Kayrros, while U.S. inventories are near a three-year low. The surge in natural gas prices is expected to force some consumers to switch to oil, tightening the market further ahead of the northern hemisphere winter.

China on Friday sold oil to Hengli Petrochemical Co. and a unit of PetroChina Co. in the first auction of crude from its strategic reserves said traders with the knowledge of the matter. Grades sold included Oman, Upper Zakum and Forties.

Oil has rallied recently after a period of Covid-induced demand uncertainty, with some of the world’s largest traders and banks predicting prices may climb further amid the energy crisis. Global crude consumption could rise by an additional 370,000 barrels a day if natural gas costs stay high, according to the Organization of Petroleum Exporting Countries.

“Underpinning the latest bout of price strength is a tightening supply backdrop,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd.

Various underlying oil market gauges are also pointing to a strengthening market. The key spread between Brent futures for December and a year later is near $7, the strongest since 2019. That’s a sign traders are positive about the market outlook.

At the same time, the premium options traders are paying for bearish put options is the smallest since January 2020, another indication that traders are less concerned about a pullback in prices.

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Energy

Unlocking Investments into Africa’s Renewable Energy Market

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green energy - Investors King

The African Energy Guarantee Facility (AEGF) is launching a virtual roadshow of free webinars allowing a deeper understanding of risk issues for renewable energy projects on the continent, and conversations around risk mitigation solutions. The first webinar will take place on Thursday, 23 September from 14:30-16:00 hrs. EAT. 

The session will be oriented on how to get more energy projects from the drawing board to the grid. While the energy demand in African economies is expected to nearly double by 2040, and although the potential for renewable energy is 1,000 times larger than the demand, only 2GW out of almost 180GW of this new renewable power were added on the African continent.

Clearly not good enough! To improve the situation within the next two decades, new solutions need to be implemented urgently. De-risking and promoting private sector investments will play a crucial part of it.

In this 90-min interactive session, AEGF partners: the European Investment Bank (EIB), KfW Development Bank, Munich Re and the African Trade Insurance Agency (ATI) will share their experience and provide valuable insights on how they were able to come together and design practical solutions for investors and financiers of green energy projects in Africa aligned with SDG7 objectives.

Across Africa, the complexity of renewable energy projects and their long tenors hold back crucial energy investment. Tailored to the specific needs and risk profiles of sustain­able energy projects, AEGF will tackle the investment challenge by providing underwriting expertise and capacity tailored to market needs.

The AEGF will significantly boost private investment in sustainable energy projects, both expanding access to clean energy and contribute to achieving UN Sustainable Development Goals. The scheme supports new private sector investment in eligible renewable energy, energy efficiency and energy access projects in sub-Saharan Africa.

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Energy

Shell Signs Agreement To Sell Permian Interest For $9.5B to ConocoPhillips

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Shell profit drops 44 percent

Shell Enterprises LLC, a subsidiary of Royal Dutch Shell plc, has reached an agreement for the sale of its Permian business to ConocoPhillips, a leading shales developer in the basin, for $9.5 billion in cash. The transaction will transfer all of Shell’s interest in the Permian to ConocoPhillips, subject to regulatory approvals.

“After reviewing multiple strategies and portfolio options for our Permian assets, this transaction with ConocoPhillips emerged as a very compelling value proposition,” said Wael Sawan, Upstream Director. “This decision once again reflects our focus on value over volumes as well as disciplined stewardship of capital. This transaction, made possible by the Permian team’s outstanding operational performance, provides excellent value to our shareholders through accelerating cash delivery and additional distributions.”

Shell’s Upstream business plays a critical role in the Powering Progress strategy through a more focused, competitive and resilient portfolio that provides the energy the world needs today whilst funding shareholder distributions as well as the energy transition.

The cash proceeds from this transaction will be used to fund $7 billion in additional shareholder distributions after closing, with the remainder used for further strengthening of the balance sheet. These distributions will be in addition to our shareholder distributions in the range of 20-30 percent of cash flow from operations. The effective date of the transaction is July 1, 2021 with closing expected in Q4 2021.

Shell has been providing energy to U.S. customers for more than 100 years and plans to remain an energy leader in the country for decades to come.

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